Twin Disc announced today that it has entered into a definitive agreement to acquire Veth Propulsion Holding BV and its wholly-owned subsidiaries for approximately US$58.6m.
Twin Disc, a worldwide manufacturer of power transmission technology and equipment for marine and land-based applications, is celebrating its 100th anniversary. It has been partnering for the past two years with Veth, a 65-year old provider of propulsion and power control products that is based in Papendrecht, Netherlands.
“The companies share similar cultures based on providing customers with high-quality products and leading design, engineering, and manufacturing services,” says John Batten, Twin Disc president and CEO, in a statement.
“Veth Propulsion has extensive experience in engineering and product development that will enhance our current product portfolio,” continues Batten. “Innovations like Veth Propulsion’s industry-recognized Hybrid Drive and Integrated L-Drive will open new markets and opportunities for growth for Twin Disc.”
For calendar 2018, Veth Propulsion is expected to achieve sales of US$60m.
As part of the acquisition, Twin Disc expects to close a new $50m asset-based line of credit and $35m term note.